1. Field of the Invention
The present invention generally relates to credit and identity verification systems. More particularly, the present invention relates to credit approval systems at the point of sale which utilize biometric data such as fingerprints, signatures, and/or other methods to ascertain if the identity of the person attempting to pay by a negotiable instrument, such as a check is an authorized person for that particular checking or credit account, and if that account is in order.
2. Description of the Related Art
There are devices known in the art which gather biometric data from persons for storage or for comparison with stored biometric data for purposes of identity verification. An example of storing biometric data for identity verification is U.S. Pat. No. 4,213,038 to Silverman, et al., for an access security system. Silverman, et al., discloses storing a fingerprint on a card, in either an actual print or xe2x80x9cmicropattern,xe2x80x9d and the card is read by a control means. The fingerprint recordation is ancillary to the preferred function of the card which is identification based upon solely the microperforation of the card, which is not directly related to the fingerprint.
Check funds verification systems are also known in the art which allow merchants and others to verify that customers have funds available in a specific checking account. U.S. Pat. No. 5,484,988 to Hills, et al, discloses a check-writing point of sale system that provides for remote verification of funds availability. Hills, et al., is particularly directed to the purchase of goods through an electronic funds transfer.
U.S. Pat. No. 4,253,086 to Szwarcbier discloses a process and apparatus for positive identification of customers that is particularly disclosed as using a fingerprint on a credit card and comparing the fingerprint of the customer to that on the card, and selectively, with a master print on file. Szwarcbier also discloses a printed fingerprint card.
There are xe2x80x9csmart cardsxe2x80x9d known in the art which include fingerprint identification means, such as U.S. Pat. No. 4,995,086 to Lilley, et al., U.S. Pat. No. 4,582,985 to Lxc3x6fberg, U.S. Pat. No. 4,993,068 to Piosenka, et al., and U.S. Pat. No. 5,180,901 to Hiramatsu. All of these references disclose smart cards which have, at least, a stored fingerprint in a local memory (such as magnetic tape or integrated circuit) which interacts with a reading means at the point of sale to assist in customer identification.
An example of an actual fingerprint sensor is U.S. Pat. No. 5,745,096 to Hsumi, et al., which is for a surface-shaped sensor identification device. The Hsumi, et al. device is focused on the specific element of sensing and recording the fingerprint, as opposed to a complete identity verification system.
The present invention, in one preferred embodiment thereof, comprises a verification system for negotiable instruments, preferably being checks, which has the ability to scan the information from checks such as the magnetic check number, and gather biometric data such as fingerprints. The system alternately scans driver""s licenses or other identification cards, and obtains and transmits a signature of a customer, preferably all occurring at a point of sale, for purposes of identity and fund verification. The verification system preferably digitizes various indicia of the check, the preferred indicia being the magnetic ink on the check, tendered by the customer at the point of sale and transmits the data to a negotiable instrument information database, preferably through a modem or other dial-up connection, whereby the inputted data is compared with an existing database of information to determine if the customer at the point of sale is in fact authorized to use the account, and if the account is in satisfactory condition for check approval.
The verification system alternatively includes a device and method for recording and/or transmitting the fingerprint of the customer at the point of sale and printing the fingerprint on the check, either in actual or digitally encoded form, such that the fingerprint can be later checked against a biometric database of existing fingerprints at such time as the check is processed at a bank, which provides an added means of security in the event the check is returned. If the system includes a device for scanning an information card which contains biometric data, such as a proper fingerprint such as on a driver""s license, and/or signature, then the fingerprint and signature of the customer can alternatively be compared to the recorded data on the card, in addition to or instead of, transmission of the various databases.
In an alternate embodiment of the verification system, a check is swiped and the fingerprint is simultaneously taken and digitized whereby the combined data is transmitted to a main system that includes a check information database and a biometric database, and the transmitted data is compared with identification data already on file, and the main system determines if the identification data of an authorized user on file matches with the transmitted data from the customer at the point of sale. The system then returns the results of the decision on approval to the point of sale. A device at the point of sale displays the decision data and/or prints out a hard copy indicating whether the check was approved or denied.
In operation, the main system receives data from the point of sale and then determines if the xe2x80x9cABAxe2x80x9d magnetic number on the check is a valid number, if the fingerprint data is that of an account owner authorized to use that account, and/or if the signature is that of the authorized account owner, whereby any negative response to these decisions preferably causes return of the data indicative of the negative response to the point of sale. Upon affirmative indications in the decisions, the main system retrieves the frequency of the account accesses to determine if the current requested access is in excess of a pre-determined limit of an allowable number of accesses. If the current access is in excess of the pre-determined allowable limit, then the data is returned to the point of sale indicating the unacceptable request to exceed the limit, and thus, denial of approval. If the current access is not in excess of the allowable determined limit, then the verification of the check is approved and such verification is used to update the frequency of account access database, and the approval is returned to the point of sale.
The verification system preferably includes the capability to provide reports on customer activity to a retailer upon request. The retailer directs an inquiry to the main system which is in communication with a series of databases and which preferably includes databases indicative of: a number of checks cashed for a specific account; the location of the checks cashed for such account; and a customer list and relevant data associated with the customer. Depending upon the inquiry generated from the retailer, the main system retrieves the requested information to generate a report on a specific customer, and then returns the report to the retailer.
Alternatively, the verification system can be used in conjunction with a bank proofing machine during batch processing of checks. When the proofing machine scans the magnetic number from the check, the identification data imprinted on a check at the point of sale is compared with account owner identification data as recorded and maintained by the bank to determine if the correct account owner submitted the check.
Accordingly, the present invention has a practical application in that it provides a negotiable instrument verification system to a retailer for use at a point of sale which determines if the customer is authorized to use a specific account, and if the account is satisfactory to remit funds for the negotiable instrument drawn thereagainst.
The present invention of the verification system further has industrial applicability in that it provides a computer system which correlates biometric data that is precise and not easily forgeable measurements of a customer, such as fingerprints and/or data from identification cards can be digitally encoded and processed along with the information relative to a negotiable instrument such that the risk of the retailer accepting a bad check is greatly reduced. Thus, the present invention can be quite economically beneficial to a retailer utilizing the system.
Other objects, features, and advantages of the present invention will become apparent to one of skill in the art after review of the hereinafter set forth Brief Description of the Drawings, and Detailed Description of the Invention and the claims.